Body Corporate change from Standard Module to Accommodation Module

[damacc]

I have an investment property in a body corporate complex which has an on-site manager/caretaker in QLD. The on-site manager/caretaker are wanting to change from the Standard Module to the Accommodation Module. They say this is because they have problems financing (they are property investors and very good OSMs) for investment properties because the Standard Module is only for 10 years, whereas the Accommodation Module is for 25 years, yet they only want 12 years.
Are there any advantage/disadvantages changing from a Standard Module to an Accommodation Module?

 

[marg4000]

Sadly, I have never yet known of a recommendation put by the on-site managers to alter conditions to benefit the owners. It is ALWAYS about increasing the value of their management rights so they can sell and get a higher price.

Be very careful.
Marg

 

[Tony3008]

On my building we are currently locked into a long and expensive management agreement - the Qld developer sold 25-year management rights on (which deliver what economists would call a supernormal profit) for a seven figure sum before the individual units were settled. There is no good reason for a manager to ask for a term of more than 2-3 years; if they're doing a good job you'll obviously renew at the end of the term, and if not you want the freedom to find someone else.

 

[damacc]

Thanks for the info.